Interim Financial Report, Q1 2024

• Net interest income rose by 11% to DKK 2,462m (Q1 2023: DKK 2,224m)
• Core income was up by 4% to DKK 3,430m (Q1 2023: DKK 3,310m)
• Core expenses rose by 5% to DKK 1,557m (Q1 2023: DKK 1,480m)
• Loan impairment charges amounted to an expense of DKK 82m (Q1 2023: DKK 96m)
• Net profit was nearly unchanged at DKK 1,286m (Q1 2023: DKK 1,289m).
• Capital ratio at 22.0%, of which common equity tier 1 capital ratio at 16.6% (Q1 2023: 19.6% and 15.4%, respectively)
• Dividend of DKK 500m, corresponding to DKK 7.78 per share, adopted at the Annual General Meeting and paid out to the shareholders in March 2024
• Share buy-back programme of up to DKK 1.5bn launches on 3 June.

Summary

”Q1 2024 showed a net profit of DKK 1.3bn. This is in line with the highest results for the first quarter of the year so far due especially to the higher level of interest rates which more than offset the effect from low activity in the housing market. The quarter was characterized by continued solid operations and work on the upcoming migration of PFA Bank. Jyske Bank’s capital position has been fully restored after the acquisition of Handelsbanken Denmark underpinned by two issuances in Q1 2024. Due to the strong capital position we are able to launch a share buy-back programme of DKK 1.5bn,” says Lars Mørch, CEO and Managing Director.

In Q1 2024, Jyske Bank’s net profit was nearly unchanged at DKK 1,286m against DKK 1,289m the year before. The results were lifted by higher net interest income due to the higher level of interest rates which has improved the profitability of the Group’s excess liquidity. Net fee and commission income showed a setback despite the acquisition of PFA Bank due to low activity in the housing market. Value adjustments still contributed positively due to the development in the financial markets. Core expenses rose by 5% as a result of collectively prescribed salary increases and the acquisition of PFA Bank. Credit quality remained solid and post-model adjustments concerning loan impairment charges increased even further to a historically high level.

In 2022, Jyske Bank acquired Handelsbanken Denmark and in 2023, it acquired PFA Bank. The integration of the former Handelsbanken Denmark was completed according to plan in 2023. The integration of PFA Bank is also proceeding according to plan. Administration and management of PFA Invest will be transferred to BankInvest before the end of the first half of 2024, paving the way for a smooth client transfer. The approach underlines Jyske Bank’s focus on client needs which contributed to Jyske Bank’s private banking clients having been Denmark’s most satisfied clients for the past eight years running according to Voxmeter.